TRENTON - A multi-million dollar state office supplies contract intended to promote cost efficiencies has riled a state lawmaker who says vendors already dealing with the state were locked out of the bidding process.

Assemblyman Jon Bramnick today questioned whether the state would, in fact, achieve premium cost savings under the deal, which replaces 17 contracts with current vendors with Massachusetts-based Staples Advantage, attained through a national cooperative of state and local government agencies.

Tony Kurdzuk/The Star-LedgerAssemblyman Jon Bramnick (R-Union) at the Statehouse in Trenton on June 25, 2009.

"We don't know if it's the most cost effective unless these ... firms have a chance to bid," said Bramnick (R-Somerset).

State Treasurer David Rousseau announced the new contract for the purchase of supplies -- from paperclips to Post-it notes -- earlier this week, which is set to take effect Sept. 1. He estimated that it would cut the state's annual supply costs of $9.8 million by 20 percent. Local governments, which order an estimated $15 to $20 million in supplies annually, could receive the same savings, according to Treasury.

In addition, next-day delivery will allow the state to empty storage facilities and close out expensive leases, saving an additional $500,000 in rental costs, Treasury officials said.

Treasury spokesman Tom Vincz said a 2006 law allowed the state to enter into cooperative purchasing agreements with other government entities outside of the state if they would result in a cost savings. Bramnick, he said, voted for the legislation.

"We are doing what the Legislature has asked us to do, we are finding efficiencies and economies and finding smarter ways to do business," said Vincz, who added the new contract replaces 17 current ones held by 15 vendors.

But Bramnick said the state disregarded the portion of the law that requires the contract to be the most cost effective.

The firms, which employ 200 workers, have been supplying the state since 2004 and only last week learned that their contracts would not be renewed, said Bramnick, who has asked the state to reconsider the deal.

Chris Bates, president of the National Office Products Alliance, which represents the firms, said they will lose more than $100 million in state contracts under the arrangement. In addition, the businesses have been left with a stockpile of supplies.

"The state completely blind-sided our members," said Bates. "Because they deliver to the state on one or two days notice, our members have to stock months' worth of products. Now, they have a significant surplus of products in stock, and no customer in two weeks."

Bates wants the state to review the matter and extend the contract during that time.
Bramnick added that the firm members have questioned whether the state would receive the same quality of supplies under the new contract.

"They told me a pen is not a pen," Bramnick said. "You may pay less for the pen and the pen may run out of ink sooner."

The new contract was competitively bid, according to Treasury. However, the NOPA contends the bidding took place at least five years ago and was not advertised well, since the National Joint Powers Alliance, the cooperative of over 28,000 government agencies and other members, is headquartered in Minnesota.